In the District Court of the United States, for the Eastern District of Pennsylvania, the United States of America, petitioner, vs. Motion Picture Patents Company, et al., defendants (1914)

Record Details:

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Cornelius D. Struble, Direct Examination. 2791 Q. Did you do that frequently or infrequently? A. Well, I would not say we did it frequently, although there was a time about, well, I should say in the Summer of 1909, when we were forced to do it by the competition at different times. Q. You mean by that, competition in violating the release day rule? A. Competition in violating the rule. Q. Did you find that other exchanges followed the same practice? A. They did. We never took the initiative in doing it, but where we had to do it to protect our customers, we did. Q. Was there any specific town or exchange with which you had special trouble of this sort? A. I could mention Fort Worth, Texas. We had accounts in that town, and the J. D. Wheelan Company of Dallas, also had accounts there, and we were forced to ship the films there ahead of the release date in order to meet the competition. Q. Licensed film or unlicensed film? A. Licensed. Q. Did you have any experience with any other exchange violating the release day rule? A. Yes, sir; we had the same trouble with the Mitchell Film Exchange, which was then located in Little Rock. Q. Did this happen on more than one occasion with the Mitchell Exchange at Little Rock? A. On a great many occasions. Also, we had the same trouble with the Oklahoma City Film Exchange, located in Oklahoma City. Q. That was an institution in your own city? A. Yes. sir. Q. Do you recall that the Motion Picture Patents Company at one time collected the royalties for the use of the projecting machines directly from the exhibitors, and subsequently had the exchanges make the collections? A. I do, sir. Q. Was that change favored by you? A. Well, I don't recall how we took it at the time. Q. Did any inconvenience arise at the beginning from the fact that the Patents Company was collecting the royalties from the exhibitors? A. Yes. sir. It was rather inconvenient for the exchange, for the reason that we never knew when an exhibitor's royalty was paid, and when it was not, and some of them would claim they had paid their royalties, and possibly they had not. and we had